Monday, March 23, 2020

Central Bank: Near-term economic outlook ‘uncertain and contradictory’

Central Bank of The Bahamas

By Natario McKenzie

NASSAU, BAHAMAS — The near term economic outlook for The Bahamas has become “uncertain and contractionary” given the COVID-19 pandemic, according to the Central Bank.

The bank noted tourism earnings are expected to decline sharply in its recently released quarterly economic review for the fourth quarter of 2019.

“Given the Coronavirus (COVID-19) pandemic, the near-term economic outlook for The Bahamas has become uncertain and contractionary,” the bank stated.

“Tourism earnings are projected to decline sharply in 2020, becoming particularly acute over the second quarter; and moderately evident even before the end of the first quarter.”

The Central Bank said the trend will lead to a large reduction in net foreign currency receipts and consequently a sizeable falloff in the Central Bank’s external reserves.  Read more >>